California Ag Network

Tag: USDA

  • USDA Invests $14.5 Million in Taxpayer Education, Program Outreach Efforts for Farmers

    The U.S. Department of Agriculture (USDA) is investing in two outreach and education efforts for farmers and ranchers, including those who are new to farming or who have been historically underserved by USDA programs. USDA’s Farm Service Agency (FSA) is investing $10 million for agriculture-oriented taxpayer education as well as $4.5 million in outreach for the Conservation Reserve Program’s Transition Incentives Program (CRP TIP), which helps with access to land for beginning and socially disadvantaged farmers and ranchers. Both efforts help advance equity and access to USDA programs and agriculture.

    “Running a farm operation is tough, and we are working to help meet gaps where farmers need assistance,” said Blong Xiong, FSA Executive Director in California. “First, filing taxes for an agricultural operation can be challenging and many agricultural producers may not have the funds to hire accountants or tax professionals to assist, especially for new and historically underserved producers. This new initiative offers support to producers in navigating tax season. Second, we want to make sure producers are aware of our many program options, and Conservation Reserve Program Transition Incentives Program (CRP TIP) provides a unique opportunity for producers with expiring CRP land to help bring new farmers into the fold.”

    Taxpayer Education 

    FSA’s $10 million investment funds the new Taxpayer Education and Asset Protection Initiative. As part of the first phase of this work, FSA has established a partnership with the University of Arkansas and the National Farm Income Tax Extension Committee. This partnership is establishing hubs for taxpayer education while developing and delivering tax education resources to farmers, ranchers, agricultural educators and tax professionals through partnerships with stakeholders and minority- serving institutions across the country.

    Many producers are not aware that receiving USDA program funds for activities, such as conservation contracts, disaster assistance payments, and pandemic relief are taxable income, and need support to assist with short- and long-term business planning associated with their program payments. To address these issues, FSA is investing in partnerships with the University of Arkansas, the National Farm Income Tax Extension Committee and other partners to develop and deliver taxpayer education to producers to help them better understand the important relationships between federal income taxes and USDA farm programs. The next phases of this work will include a suite of online resources for producers, continuing education opportunities for tax attorneys and CPAs, as well as cooperative agreement funding and training opportunities for stakeholder organizations.

    “Many rural areas lack legal and certified accounting services, and agricultural producers need additional knowledge and/or resources to integrate tax planning into their financial planning,” said Ronald L. Rainey, Assistant Vice President of the University of Arkansas System Division of Agriculture. “This partnership will help the University of Arkansas and USDA work together to overcome inequalities in tax services to serve agriculture communities.”

    These tax education partnerships focus on addressing the immediate needs of producers by delivering agricultural tax and asset protection training and information to farmers as well as developing infrastructure to support rural taxpayer education and tax preparation for limited resource, beginning, and historically underserved farmers and ranchers for the long term.

    Tax Estimator Tool

    Additionally, USDA is updating and expanding online tax resources for producers, including the new Tax Estimator Tool,an interactive spreadsheet that producers can download to estimate tax liability. It is for informational and educational purposes only and should not be considered tax or legal advice. Producers may need to work with a tax professional to determine the correct information to be entered in the Tax Estimator Tool. The tool is available at ruraltax.org.

    Registration is also open for a webinar on Using the Tax Calculator to estimate your tax burden. The webinar will be held on Aug. 15 at 2 p.m. Eastern Standard Time. Previous webinars, fact sheets and other resources are available on farmers.gov/taxes.

    Available Funding for CRP TIP Outreach

    TIP provides financial incentives to CRP participants with expiring contracts, if they sell or rent the land to a beginning producer, veteran farmer or rancher, or a producer from a socially disadvantaged group.

    FSA is making available up to $4.5 million in funding and expects to award 15 to 20 partner and stakeholder organizations to conduct outreach and provide technical assistance to promote awareness and understanding of CRP TIP among agricultural communities, in particular those who are military veterans, new to farming, or historically underserved.

    Eligible stakeholders include Federally-recognized Indian tribal organizations, State governments, local governments, nonprofit organizations, and higher education institutions. Interested stakeholders may submit one-to-two-year proposals, and must submit their applications via Grants.gov by October 14, 2022.

    Deputy Under Secretary Montaño added: “This technical assistance funding will be critical in helping our external stakeholders connect contract holders to beginning producers, and make sure landowners understand TIP.”

    CRP TIP Training for Staff

    FSA will also train field employees on CRP TIP to improve and increase staff and producer awareness and support participation. Training will help staff understand the larger issues that can affect landowners’ considerations around CRP TIP and allow them to further help producers.

    More Information 

    Producers interested in CRP TIP and other USDA programs should contact their local USDA Service Center to learn more or to apply for programs.

  • USDA Begins Issuing Payments for Spot Market Hog Pandemic Program

    The U.S. Department of Agriculture (USDA) is increasing the amount of funding available for the Spot Market Hog Pandemic Program (SMHPP) and expects to issue approximately $62.8 million in pandemic assistance payments to hog producers starting this week. SMHPP assists eligible producers who sold hogs through a spot market sale from April 16, 2020, through Sept. 1, 2020. USDA’s Farm Service Agency (FSA) accepted SMHPP applications through April 29, 2022.

    “In order to provide more targeted support to hog producers affected by the pandemic, FSA was able to increase funding for SMHPP to provide full payments to producers instead of applying a payment factor,” said FSA Administrator Zach Ducheneaux. “We are pleased to be able to provide more equitable opportunities for hog producers who were hard-hit by the pandemic.”

    SMHPP Payments

    SMHPP payments will be calculated by multiplying the number of head of eligible hogs, not to exceed 10,000 head, by the payment rate of $54 per head.

    FSA originally planned to apply a payment factor if calculated payments exceeded the allocated $50 million in pandemic assistance funds for SMHPP. Payments are not expected to be factored due to Agriculture Secretary Tom Vilsack’s decision to increase funding enabling producers to receive 100% of the calculated SMHPP payment.

    There is no per person or legal entity payment limitation on SMHPP payments.

    SMHPP Background

    USDA offered SMHPP in response to a reduction in packer production due to the COVID-19 pandemic, which resulted in fewer negotiated hogs being procured and subsequent lower market prices. The program is part of USDA’s broader Pandemic Assistance for Producers initiative and addresses gaps in previous assistance for hog producers.

  • Winter Honey Bees Show Resistance to a Common Insecticide

    Winter honey bees, compared to newly emerged summer bees, have a better ability to withstand the harmful effects of a widely-used insecticide in pest management, according to a recent study published in Apidologie.

    Honey bees feed on imidacloprid during a cage experiment. (Photo by Mohamed Alburaki, ARS)

    United States Department of Agriculture (USDA), Agricultural Research Service (ARS) researchers from the Bee Research Laboratory in Beltsville, Maryland, found winter honey bees’ consumption of a nearly lethal, imidacloprid-laced syrup did not affect their survival during the study.

    Imidacloprid is an insecticide made to mimic nicotine and is toxic to insects. This powerful insecticide is widely used in agriculture for pest management control. Honey bees are likely to encounter imidacloprid while foraging in the field or through contaminated hive products.

    “Although imidacloprid toxicity to honey bees is an important concern for beekeepers, our results provide good news,” said Miguel Corona and Mohamed Alburaki, researchers at the ARS Bee Research Laboratory. “Our research shows that winter honey bees have unrecognized physiological mechanisms to counteract the effects of insecticides.”

    The study assessed differences in diet behaviors for summer and winter honey bees in a controlled laboratory setting. Researchers provided sublethal doses of the imidacloprid-laced syrup to bees as necessary. Winter bees showed a preference to consuming imidacloprid-laced syrup over untreated sugar syrup while summer honey bees made the safe choice and avoided consuming the laced syrup each time.

    According to Corona, it is important to study the differences of summer and winter honey bees’ diets.  Honey bee colonies survive extreme seasonal differences in temperature and forage by producing two seasonal phenotypes of workers: summer and winter bees. These seasonal phenotypes differ significantly in their psychological characteristics as well as their susceptibility to disease and ability to handle poisonous substances.

    “Winter bees and summer bees undergo physiological changes to cope with drastic seasonal changes in temperature and the availability of nutritional resources,” said Corona and Alburaki. “Our results suggest that long-lived winter bees are especially well-adapted to tolerate higher levels of chemical stressors.”

    Corona said that although the study’s results show that winter bees could tolerate more intoxication by imidacloprid, they are still susceptible to higher concentrations of this insecticide in field settings. — By the USDA-ARS

  • USDA Issues Over $4 Billion to Farmers in Emergency Relief Payments to Date

    Agriculture Secretary Tom Vilsack announced that to date, agricultural producers have already received more than $4 billion through the Emergency Relief Program (ERP), representing approximately 67% of the more than $6 billion projected to be paid through this first phase of the program. The U.S. Department of Agriculture (USDA) mailed out pre-filled applications in late May to producers with crop insurance who suffered losses due to natural disasters in 2020 and 2021. Commodity and specialty crop producers have until July 22 to complete applications.

    “We recognize the financial recovery need is great and worked deliberately to create a program delivery process that would ensure quick payments to producers,” Vilsack said. “I am extremely proud to share that the strategically streamlined ERP application and program implementation process have yielded the desired results – reduced burdens on and expedited payment to approximately 120,000 disaster-impacted agricultural producers, to date.”

    USDA is implementing ERP and ELRP in two phases, with the first phase utilizing existing claim data to provide relief expediently, and the second phase focusing on ensuring producers not covered by other programs receive assistance. For phase one, USDA used crop insurance and Noninsured Crop Disaster Assistance Program (NAP) claim data.

    Both ERP and the previously announced Emergency Livestock Relief Program (ELRP) are funded by the Extending Government Funding and Delivering Emergency Assistance Act, which President Biden signed into law in 2021. The law provided $10 billion to help agricultural producers impacted by wildfires, droughts, hurricanes, winter storms and other eligible disasters experienced during calendar years 2020 and 2021, of which $750 million is committed to livestock producers who experienced losses to drought or wildfire in calendar year 2021. Eligible livestock producers received ELRP payments totaling more than $590 million since the program was rolled out in late March.

    Pre-Filled Applications

    Eligible producers with eligible crop insurance claims have received pre-filled applications, which included eligibility requirements and payment calculations. Producers received a separate application form for each program year in which they experienced an eligible loss.

    Producers should check with the Farm Service Agency (FSA) at their local USDA Service Center to confirm eligibility and to ensure that all required farm program participation, adjusted gross income and conservation compliance forms are on file. Producers who have previously participated in FSA programs likely have these required forms already on file.

    ERP provisions allow for a higher payment percentage for historically underserved producers, including beginning, limited resource, socially disadvantaged and military veteran producers. To qualify for the higher payment rate, individuals must have a Form CCC-860, Socially Disadvantaged, Limited Resource, Beginning and Veteran Farmer or Rancher Certification on file.

    To receive a payment, producers must complete and submit their forms by the July 22 deadline. Once the completed ERP application for payment is submitted to and signed by the FSA, producers enrolled in direct deposit should look for their payment within three business days.

    Additional Assistance through Phase One

    FSA will be sending pre-filled applications for about 9,000 eligible producers with NAP coverage in mid-July.

    The Federal crop insurance data used to populate ERP phase one pre-filled applications included claim data on file with USDA’s Risk Management Agency (RMA) as of May 2, 2022. At that time, claim data for the Supplemental Coverage Option (SCO), Enhanced Coverage Option (ECO), Stacked Income Protection Plan (STAX), Margin Protection Plan (MP) or Area Risk Protection Insurance (ARPI) were not complete, so crop/units including these coverage options were not included in the pre-filled ERP application form. In late summer 2022, updated claim information will be used to generate a second pre-filled application for those crop/units with eligible losses on file with RMA not included in the first mailing.

    More Information 

    ERP covers losses to crops, trees, bushes and vines due to a qualifying natural disaster event in calendar years 2020 and 2021.  Eligible crops include all crops for which crop insurance or NAP coverage was available, except for crops intended for grazing. Qualifying natural disaster events include wildfires, hurricanes, floods, derechos, excessive heat, winter storms, freeze (including a polar vortex), smoke exposure, excessive moisture, qualifying drought and related conditions.

    All producers who receive ERP phase one payments are statutorily required to purchase crop insurance or NAP coverage where crop insurance is not available for the next two available crop years.

    Producers should contact their local Service Center if they have questions. Additionally, other resources include:

  • Nominate Farmers and Ranchers to Serve on Local FSA County Committees

    The U.S. Department of Agriculture (USDA) Farm Service Agency (FSA) is now accepting nominations for county committee members. Elections will occur in certain Local Administrative Areas (LAA) for members. LAAs are elective areas for FSA committees in a single county or multi-county jurisdiction. This may include LAAs that are focused on an urban or suburban area.  
     
    County committee members make important decisions about how Federal farm programs are administered locally. All nomination forms for the 2022 election must be postmarked or received in the local FSA office by Aug. 1, 2022.  
      
    “It is a priority for USDA to integrate equity into its decision-making and policymaking, and that starts with our local FSA county committees,” said FSA Administrator Zach Ducheneaux. “We need enthusiastic, diverse leaders to serve other agricultural producers on these committees as we work to build equitable systems and programming inclusive of all employees and all of our customers. I ask that you consider making a difference in your community by nominating yourself, or another agricultural producer, to serve on your local FSA county committee.”  
      
    Agricultural producers who participate or cooperate in a USDA program and reside in the LAA that is up for election this year, may be nominated for candidacy for the county committee. A cooperating producer is someone who has provided information about their farming or ranching operation to FSA, even if they have not applied or received program benefits. Individuals may nominate themselves or others and qualifying organizations may also nominate candidates. USDA encourages minority producers, women, and beginning farmers or ranchers to nominate, vote and hold office.  
      
    Nationwide, more than 7,700 dedicated members of the agricultural community serve on FSA county committees. The committees are made up of three to 11 members who serve three-year terms. Producers serving on FSA county committees play a critical role in the day-to-day operations of the agency. Committee members are vital to how FSA carries out disaster programs, as well as conservation, commodity and price support programs, county office employment and other agricultural issues.  
       
    Urban and Suburban County Committees 

    The 2018 Farm Bill directed USDA to form urban county committees as well as make other advancements related to urban agriculture, including the establishment of the Office of Urban Agriculture and Innovative Production. FSA established county committees specifically focused on urban agriculture. The urban county committees will work to encourage and promote urban, indoor and other emerging agricultural production practices. Additionally, the new county committees may address areas such as food access, community engagement, support of local activities to promote and encourage community compost and food waste reduction.  
      
    Urban committee members are nominated and elected to serve by local urban producers in the same jurisdiction. Urban county committee members will provide outreach to ensure urban producers understand USDA programs and serve as the voice of other urban producers and assist in program implementation that support the needs of the growing urban community.    
      
    The following urban and suburban county committees will hold elections this year Phoenix, Atlanta, New Orleans, Minneapolis-St. Paul, St. Louis, Albuquerque, N.M., Cleveland, Portland, Ore., Philadelphia, Dallas and Richmond, Va.   
      
    USDA recently announced six new urban county committees in Chicago, Detroit, Grand Rapids, Los Angeles, Brooklyn, and Oakland. Elections will be held for these locations at a later date.  
      
    Learn more at farmers.gov/urban.  
      
    More Information 

    Producers should contact their local FSA office today to register and find out how to get involved in their county’s election, including if their LAA is up for election this year. To be considered, a producer must be registered and sign an FSA-669A nomination form. Urban farmers should use an FSA-669-A-3 for urban county committees. The form and other information about FSA county committee elections are available at fsa.usda.gov/elections.  
      
    Election ballots will be mailed to eligible voters beginning Nov. 7, 2022. Producers can find their local USDA Service Center at farmers.gov/service-locator.

  • USDA Reminds Farmers to File Crop Acreage Reports

    Agricultural producers who have not yet completed their crop acreage reports after planting should make an appointment with their local Farm Service Agency (FSA) service center before the applicable deadline. July 15 is a major deadline for most crops, but acreage reporting deadlines vary by county and by crop. Producers should make an appointment as soon as possible to avoid missing earlier deadlines.

    “To be eligible for many of our programs, including disaster assistance, you will need an acreage report on file,” said FSA Administrator Zach Ducheneaux. “To ensure you can benefit from our many programs, including disaster assistance, please be sure to call your local FSA office to make an appointment to report your acreage. As a reminder perennial forage is eligible for continuous acreage reporting, which allows producers to report their acreage once and keep their certification in place until they make a change.”

    The Administrator added, “Continuous acreage reporting provides an opportunity to substantially streamline producers’ applications for assistance. With protracted drought conditions across the Great Plains and Western United States, producers who had previously filed a continuous acreage report benefitted from a streamlined application process for disaster programs like the Livestock Forage Disaster Program. I encourage producers to continue taking advantage of this tool and simplify their ability to apply for assistance.”

    An acreage report documents a crop grown on a farm or ranch and its intended uses. Filing an accurate and timely acreage report for all crops and land uses, including failed acreage and prevented planted acreage, can prevent the loss of program benefits.

    How to File a Report

    Producers can contact their FSA at their local USDA Service Center for acreage reporting deadlines that are specific to their county.

    To file a crop acreage report, producers need to provide:

    • Crop and crop type or variety.
    • Intended use of the crop.
    • Number of acres of the crop.
    • Map with approximate boundaries for the crop.
    • Planting date(s).
    • Planting pattern, when applicable.
    • Producer shares.
    • Irrigation practice(s).
    • Acreage prevented from planting, when applicable.
    • Other information as required.

    Acreage Reporting Details

    The following exceptions apply to acreage reporting dates:

    • If the crop has not been planted by the acreage reporting date, then the acreage must be reported no later than 15 calendar days after planting is completed.
    • If a producer acquires additional acreage after the acreage reporting date, then the acreage must be reported no later than 30 calendar days after purchase or acquiring the lease. Appropriate documentation must be provided to the county office.
    • If crops are covered by the Noninsured Crop Disaster Assistance Program, acreage reports should be submitted by the applicable state, county, or crop-specific reporting deadline or 15 calendar days before grazing or harvesting of the crop begins.

    Producers should also report crop acreage they intended to plant but were unable to because of a natural disaster.

    Prevented planting acreage must be reported on form CCC-576, Notice of Loss, no later than 15 calendar days after the final planting date as established by FSA and USDA’s Risk Management Agency (RMA).

    FSA offers continuous certification for perennial forage. This means after perennial forage is reported once and the producer elects continuous certification, the certification remains in effect until a change is made. Check with FSA at the local USDA Service Center for more information on continuous certification.

    New Option to View, Print and Label Maps on Farmers.gov

    Producers with an eAuth account linked to their USDA customer record can now access their FSA farm records, maps and common land units by logging into farmers.gov. A new feature will allow producers to export field boundaries as shapefiles and import and view other shapefiles, such as precision agriculture boundaries. This will allow producers to view, print and label their own maps for acreage reporting purposes.

    Producers who have authority to act on behalf of another customer as a grantee via form FSA-211 Power of Attorney, Business Partner Signature Authority, along with other signature types, or as a member of a business can now access information in the farmers.gov portal.

    Producers can learn how to use the farmers.gov Farm Records Mapping functionality with this fact sheet and these video tutorials.

    More Information

    Producers can make an appointment to report acres by contacting their local USDA Service Center.

  • USDA Receives Overwhelming Interest for Partnerships for Climate-Smart Commodities

    The U.S. Department of Agriculture (USDA) announced today that the second funding pool through the Partnerships for Climate-Smart Commodities opportunity received over 600 applications from over 400 groups. While USDA is in the process of calculating the total requested amount for the second funding pool, the overall interest in the opportunity already exceeds more than $18 billion.

    “The results of the second funding pool clearly demonstrate the strong demand in the U.S. agriculture and forestry industry for solutions that expand markets for American producers and forest landowners, particularly those that are small or historically underserved,” said Under Secretary for Farm Production and Conservation Robert Bonnie. “The first funding pool more than exceeded our high expectations, and the second round received more applications than the first. We’re looking forward to going through this robust pool of applications.”

    The second funding pool, which closed on Friday, June 10, included proposals from $250,000 to $4,999,999 that emphasize the enrollment of small and/or underserved producers, and/or monitoring, reporting and verification activities developed at minority-serving institutions.

    The applicants were wide-ranging, including minority serving institutions, tribal and underserved groups, state and local governments, private companies, and many other entities from across the United States, tribal lands, D.C., Puerto Rico, Guam, and other territories.

    First Funding Pool Submissions

    The first round closed on May 6 and included over 450 proposals ranging from $5 million to $100 million each. The applications came from over 350 groups and covered every state in the nation, as well as tribal lands, the District of Columbia and Puerto Rico.

    First-round proposals requested more than $18 billion and offered to match more than $8 billion in nonfederal dollars. These submissions are currently being reviewed and selections are anticipated later this summer.

    More Information

    Frequently asked questions and additional information are available on the Partnerships for Climate-Smart Commodities webpage on usda.gov.

  • Farming Seaweed: It’s Not Just For Sushi Anymore

    What do you think of when you hear “seaweed”? Chances are, its sushi, nuisance at the beach, or something in a package at an Asian market. If that’s the case, you’re in for a surprise.

    Without knowing it, you might, literally, be up to your neck in seaweed; seaweed is a common ingredient in cosmetics, moisturizers, anti-aging and anti-inflammatory products, lotions, shampoos, and toothpaste.

    Globally, the seaweed industry hauls in about $6 billion per year, with farmers producing more seaweed per ton than lemons and limes. Its products run the gamut in agriculture, from farm to fork; as biomass for biofuel; and in ways that help the environment to mitigate climate change.

    “There are many types of seaweeds that are a part of marine ecosystems,” said Caird Rexroad III, national program leader for aquacultureat USDA’s Agricultural Research Service. “Seaweed is harvested from the wild, however we’re also seeing an increase in seaweed farming in the United States.”

    International seaweed production has increased over 1000-fold since 1950, up from 34.7 thousand tons to more than 34.7 million tons. Although Europe and Asia have outpaced the United States, seaweed farming is the fastest-growing sector of American aquaculture. Dozens of aquatic farms have taken off in New England, the Pacific Northwest, and Alaska, where production has grown from 18 tons in 2017 to about 440 tons in 2021.

    Seaweeds are farmed by culturing them on long lines that are suspended below the surface of marine waters, Rexroad said. Once fully grown, farmers harvest it for processing. Seaweeds can also be grown on land in tanks supplied with seawater, but these systems are primarily used for research.

    Rexroad chairs a Congressionally directed group from USDA and the National Oceanic and Atmospheric Administration (NOAA); its mission includes studying how seaweed could help deacidify the oceans; study emerging ocean seaweed farming practices; and coordinate and conduct research to develop and enhance pilot-scale seaweed farming.

    “I expect seaweed farming to expand in the United States so that we can consume and/or export more seaweed food products, and one day have them included in the making of biofuels,” Rexroad said. “The United States has tremendous marine resources that could support seaweed farming.”

    Many chefs include various types of seaweed in their recipes or serve it as a featured item. In addition to flavor, seaweed has many nutritional benefits, depending on the type of seaweed. Those benefits include iodine, which supports thyroid function; vitamins, including B12; and many antioxidants, carotinoids, and flavonoids. Carotinoids have cancer-fighting properties, while flavonoids help prevent cardiovascular disease, diabetes, cancer, and such cognitive diseases as Alzheimer’s and dementia.

    Rexroad’s team includes the Bigelow Laboratory for Ocean Sciences, in East Boothbay, ME; the National Science Foundation; U.S. Environmental Protection Agency; and several agencies of the U.S. Departments of Agriculture, Commerce, Energy, Interior, and Health and Human Services. – By Scott Elliott, USDA-ARS Office of Communications

  • Meat and Poultry Industry Prove Resilience

    The North American Meat Institute (Meat Institute) today released the following statement in response to a U.S. Department of Agriculture’s (USDA) Agricultural Marketing Service report on Agricultural Competition and the first in a series of rules changes the Administration is proposing under the Packers and Stockyards Act:

    “Despite what the White House says, the meat and poultry industry proved to be remarkably resilient during the pandemic,” said Julie Anna Potts, President and CEO of the Meat Institute. “Following the challenges of the spring of 2020, the industry acted immediately to reduce cases of COVID associated with workers in meat and poultry facilities reducing case rates to well below national averages even during the Delta and Omicron surges. (go here for actual reported case rates)

    “USDA’s own data tells us that in both 2020 and 2021, throughout the pandemic, regardless of slowdowns in processing, there was record beef production. This is resiliency by definition.”[1]

    “In the beef and cattle markets, once packers processed the backlog of cattle due to pandemic slowdowns, prices for producers rose to seven year highs in 2021, and now in 2022 prices are 17.5 percent above 2021 prices.

    “Unfortunately, due to the Biden inflationary economy, producers don’t benefit as much from higher prices because they struggle with high input costs for feed, fuel, and fertilizer.

    “The Biden Administration is once again blaming businesses for higher consumer prices when its own policies have created inflation throughout the economy.

    “Industry concentration is not the reason for higher consumer prices for beef, as the Meat Institute has proved time and again, the four firm concentration ratio has been in place for nearly 30 years holding prices low for consumers.

    “While the Meat Institute supports transparency in meat and poultry markets, we are still reviewing the rule proposed today. And we remain concerned about further government intrusion in the market through possible proposed rules mentioned in the Advance Notice of Proposed Rule Making.”

    About North American Meat Institute

    The Meat Institute is the United States’ oldest and largest trade association representing packers and processors of beef, pork, lamb, veal, turkey, and processed meat products. NAMI members include over 350 meat packing and processing companies, the majority of which have fewer than 100 employees, and account for over 95 percent of the United States’ output of meat and 70 percent of turkey production.

    [1] USDA Livestock Slaughter 2020 Summary, Record High Red Meat Production for 2020;  USDA Livestock Slaughter 2021 Summary, Total Red Meat and Beef Production at Record High in 2021

  • USDA Announces Signup for Ag Commodity Container Assistance Program

    Agriculture Secretary Tom Vilsack announced that the U.S. Department of Agriculture (USDA) will begin accepting applications for the Commodity Container Assistance Program (CCAP) which currently includes a partnership with the Port of Oakland in California and the Northwest Seaport Alliance (NWSA), which is a marine cargo operating partnership between the Port of Seattle and the Port of Tacoma in Washington State. Ongoing market disruptions have created logistical challenges associated with the availability and flow of shipping containers to transport agricultural commodities, which has prevented or delayed American-grown agricultural commodities from reaching their markets.

    “Both the Port of Oakland and the NWSA in Seattle have been identified as key gateways for American-grown agricultural commodities, and each has experienced significant challenges with the flow of containerized agricultural commodities and products,” Secretary Vilsack said. “While USDA’s per-container reimbursements will not cover the full cost of moving and storing shipping containers, the assistance provided will help ensure American-grown agricultural products can once again efficiently move through supply chains to reach global markets.”

    Port of Oakland  

    Fewer shipping containers have been made available for U.S. agricultural commodities as ocean carriers have circumvented traditional marketing channels and rushed containers back to be exported empty and, as a result, many of these carriers have suspended service to the Port of Oakland.

    The Howard Terminal “pop up” site in the Port of Oakland will provide space to prepare empty containers. Agricultural companies and cooperatives will have easier access to these containers, which they can fill with commodities, which will help restore shipping services to agricultural commodities while relieving congestion.

    For the Port of Oakland, the Agricultural Marketing Service covered 60% of the start-up costs for the “pop up” site and under CCAP the Farm Service Agency (FSA) is providing a $125 per container payment to partially assist agricultural commodity owners for the additional logistical expenses associated with picking up empty shipping containers to be filled with agricultural commodities and products at the Port of Oakland. Under CCAP FSA will also provide payments of $200 per dry container and $400 per refrigerated, or reefer, container to help cover additional logistical costs associated with moving the shipping container twice, first to the preposition site and then to the terminal loading the vessel, along with the cost of temporary storage.

    Northwest Seaport Alliance  

    Congestion-induced impacts to vessel schedules and prioritization of returning containers empty to Asia have significantly raised barriers for exporting agricultural commodities in containers, resulting in lost markets and disappointed customers. The Northwest Seaport Alliance has seen a nearly 30% decline in the export of agricultural commodities in the last six months of 2021 and the ratio of loaded versus empty container exports has shifted to predominately empty containers since May 2021.

    In Seattle, a 49-acre existing near-dock facility “pop up” site will be used to accept either dry agricultural or refrigerated, or reefer, containers for temporary storage at NWSA in Seattle to reduce operational hurdles and costs so containers can more quickly be loaded on ships at the export terminals.

    For the NWSA, under CCAP FSA will provide payments of $200 per dry container and $400 per reefer container to help cover the additional logistical costs of moving the container twice, first to the preposition site and then to the terminal loading the vessel, along with the cost of temporary storage. The NWSA “pop-up” site itself does not require USDA cost-share assistance as this site already has handling equipment and reefer plugs.

    How to Apply   

    The Farm Service Agency (FSA) will make monthly direct payments to agricultural companies and cooperatives on a per-container basis based upon the location of the port, and the type of shipping container, including empty containers, dry filled containers, and reefer filled containers.  Both sites will have the ability to pre-cool refrigerated shipping containers to receive perishable commodities.

    To apply for CCAP, applicants must complete form FSA-862, Commodity Container Assistance Program (CCAP) Applicationaccording to FSA-862 instructions and submit the form to the FSA National Office by email to SM.FPAC.FSA.CCAP@usda.gov. Payments will be made in arrears and verified with terminal records. A Unique Entity ID (12 alphanumeric characters assigned by SAM.gov) is required. Applicants that wish to receive payment by direct deposit must complete SAM.gov registration online at sam.gov/content/home and provide bank account information. Applicants may submit applications on a monthly basis, but all applications must be submitted by Jan. 31, 2023.

    FSA will make payments to eligible owners or designated marketing agents of U.S. agricultural commodities based on the number of eligible shipping containers utilized from March 1, 2022, through Dec. 31, 2022, from the Port of Oakland or the NWSA to ship agricultural commodities to their designated markets on container ships. Eligible commodities include agricultural commodities (other than tobacco) which are grown or produced in the United States for food, feed, or fiber, and products made from those commodities, including certain forestry products.

    Visit the Notice of Funds Availability for more information on applicant eligibility and how to apply.

    About the Partnership  

    USDA’s partnerships with the Port of Oakland and NWSA is part of the Administration’s Supply Chain Task Force efforts with state and local governments and builds on earlier efforts including a US Department of Transportation partnership with the Port of Savannah in Georgia. The benefits of relieving congestion and addressing capacity issues at ports through partnerships go well beyond the local region, as commodities and agricultural products grown and processed from thousands of miles away flow through these ports.

    USDA continues to seek opportunities to partner with additional ports or other intermodal container facilities to help American farmers and agricultural producers move their product to market and manage the short-term challenges while pressing the ocean carriers to restore better levels of service.